TMI Blog2017 (9) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-SM - A/12081/2017 - Dated:- 28-8-2017 - D. M. Misra, Member (Judicial) For the Appellant : None For the Respondent : Sh. L. Patra, A.R. ORDER Per: Dr. D.M. Misra None appeared for the appellant. Heard Ld. AR for the Revenue. 2. This is an appeal filed against order-in-appeal No. AHM-EXCUS-001-APP-034-2015-16 dated 26.11.2015 passed by Commissioner(Appeals) Ahmedabad. 3. Briefly stated the facts of the case are that the appellant had availed CENVAT credit of duty paid on MS Channels, MS Plate, MS Angle etc. used the same for repair and maintenance of the capital goods installed in the factory. Alleging that these items are not eligible to credit, Show Cause Notice was issued to them for recovery of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e workshop meant for repair and maintenance of the plant and machinery's would be liable for cenvat credit and also by the judgments of Hon ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. v. Commissioner of Central Excise (supra) and Hon ble Karnataka High Court in the case of Commissioner of Central Excise v. Alfred Herbert (India) Ltd. (supra) wherein Hon ble High Court have held that the inputs used for repair and maintenance of plant and machinery would be eligible for cenvat credit. The learned departmental representative has cited a contrary judgment of Hon ble High Court of Andhra Pradesh, in the case of Sree Rayalaseema Hi-Strength Hypo Ltd. v. Commissioner of Customs Central Excise, Tirupati report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing activity is not possible with malfunctioning machines, and leaking tanks, pipes and tubes. Therefore the activity of repair and maintenance of plant and machinery is an activity which has direct nexus with manufacture of final products and the goods used in this activity would be eligible for Cenvat credit. For eligibility of an input for Cenvat credit what is relevant is whether the activity in which that input is used has nexus with the manufacture of final product and the nexus has to be determined on the basis of criteria as to whether that activity is commercially essential for manufacture of the final products. 6. In the result, the impugned order is set-aside and the appeal is allowed with consequential relief, if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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